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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net income $ 159,924 $ 185,912
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation and amortization 266,192 243,812
Amortization of debt issuance costs and debt discounts as interest 6,114 4,374
Straight line rental income (10,377) (5,807)
Security deposits received or replenished 34,945 20,098
FF&E reserve income and deposits (57,890) (51,840)
Loss on early extinguishment of debt 228  
Equity in earnings of an investee (107) (71)
Gain on sale of real estate   (11,015)
Other non-cash (income) expense, net (2,298) 650
Changes in assets and liabilities:    
Due from related persons (1,909) (1,629)
Other assets (8,284) (7,479)
Accounts payable and other liabilities (20,823) (19,838)
Due to related persons (5,637) 17,739
Net cash provided by operating activities 360,078 374,906
Cash flows from investing activities:    
Real estate acquisitions and deposits (206,745) (380,926)
Real estate improvements (122,239) (172,627)
FF&E reserve escrow fundings (2,265) (6,505)
Investment in The RMR Group Inc.   (15,196)
Net cash used in investing activities (331,249) (575,254)
Cash flows from financing activities:    
Proceeds from issuance of common shares, net 371,956 0
Proceeds from issuance of senior unsecured notes, net of discounts 737,612  
Repayment of senior unsecured notes (575,000)  
Borrowings under unsecured revolving credit facility 643,000 611,000
Repayments of unsecured revolving credit facility (958,000) (175,000)
Payment of debt issuance costs (6,106) (5)
Repurchase of common shares (583) (419)
Distributions to preferred shareholders (15,498) (15,497)
Distributions to common shareholders (230,358) (224,190)
Net cash (used in) provided by financing activities (32,977) 195,889
Decrease in cash and cash equivalents (4,148) (4,459)
Cash and cash equivalents at beginning of period 13,682 11,834
Cash and cash equivalents at end of period 9,534 7,375
Supplemental cash flow information:    
Cash paid for interest 137,007 119,885
Cash paid for income taxes 2,464 2,289
Non-cash investing activities:    
Hotel managers’ deposits in FF&E reserve 55,518 49,774
Hotel managers’ purchases with FF&E reserve (48,388) (45,965)
Investment in The RMR Group Inc. paid in common shares $ 0 43,285
Real estate acquisitions   (45,042)
Sales of real estate   $ 45,042